KPMG: Saudi banks on the journey of customer endurance based on strong capital and liquidity base

KPMG: Saudi banks on the journey of customer endurance based on strong capital and liquidity base

KPMG, the leading provider of audit, tax and advisory services inSaudi Arabia, published the latest edition of its "Banking Pulse,“ a quarterly report series,highlighting the latest developments in the Kingdom's banking sector following thedisclosure of third-quarter 2020 financials by listed banks.  The report states that the Saudi banking sector in the third quarter of 2020 experienced arange of regulatory changes, including the value-added tax (VAT) reforms and theinstitutionalization of the real estate transaction tax (RETT), with mortgage financecontinuing to record significant growth. "The lending space in the Saudi banking sector has been rife with continued growth inmortgage financing throughout the COVID-19 environment. It is an endorsement of thehousing demand in the country and testament of government support measures,“commented Khalil Ibrahim Al Sedais, Office Managing Partner - Riyadh KPMG in SaudiArabia. As per the latest available statistics, house ownership levels climbed well over 50% whichwas previously identified as a milestone point by the end of FY 2020 as part of the Vision2030. In essence, the mortgage loan books across the banking sectors witnessed a period-on-period double-digit growth during the nine months ended September 30, 2020.  "Retail property buyers have welcomed the step-down of the tax rate from 15% back to 5%being a non-claimable component of the